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Wheat Grower Organizations React to New Trade Deal with Canada and Mexico

Washington, D.C. — The National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) welcome the Administration’s decision to move ahead with an updated trade deal with Canada and Mexico and look forward to learning more about the details.

We are pleased that the Administration recognizes the need for policy certainty with some of our top customers. While NAWG and USW must review the language of the new deal, we hope to see provisions that are positive for wheat farmers.

The current North American Free Trade Agreement (NAFTA) is critically important for wheat farmers who depend on the enormous Mexican market that NAFTA built, but it did have room for improvements, particularly on grain trade with Canada. NAWG and USW called for a fix to the Canadian grain grading system which automatically designates U.S. wheat as the lowest grade simply because it is foreign. This means U.S. farmers producing the highest quality wheat arbitrarily get less value for their crop.

Farmers should understand that nothing has changed yet, but we are pleased to see that USTR has made progress on this issue, with Canada agreeing to grade imported wheat with the same requirements as Canadian wheat. We will follow the implementation of this commitment closely to ensure U.S. farmers can finally have reciprocal access to the Canadian market.

 

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About U.S. Wheat Associates: USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About NAWG: NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 22 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

 

Nondiscrimination and Alternate Means of Communications
In all its programs, activities and employment, U.S. Wheat Associates (USW) prohibits discrimination on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

 

 

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U.S. Wheat Associates Welcomes Formal Trade Talks with Japan

ARLINGTON, Virginia — U.S. Wheat Associates (USW) is excited to hear that the Trump Administration and the Japanese government are taking formal steps toward trade negotiations. The announcement today to “further expand trade and investment between the United States and Japan in a mutually beneficial manner” has the potential to eliminate a dangerous vulnerability for U.S. wheat farmers.

 

Over the years, Japan has purchased more U.S. wheat than any other country, but also imports wheat from Canada and Australia, which are members of the Trans-Pacific Partnership (TPP) along with Japan. Once ratified, this agreement will include a gradual reduction of Japan’s effective tariffs on milling wheat imported from TPP member countries. While U.S. wheat farmers have excellent and longstanding relationships with Japanese millers, the higher tariffs on U.S. wheat would force them to purchase significantly more Canadian and Australian wheat within a few years of the new agreement’s implementation. That is a result no U.S. wheat grower can afford, and we are hopeful that the Administration will address this problem as an early achievement in the negotiations.

 

In addition to addressing this specific problem for wheat, we appreciate the emphasis on free, fair and rules-based trade. These negotiations are a positive sign that the United States is again moving toward a comprehensive agreement with Japan and, hopefully, with other countries in the Pacific region and around the world. That would benefit U.S. agriculture and the entire U.S. economy.

 

USW’s mission is to develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers in more than 100 countries. Its activities are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

 

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Nondiscrimination and Alternate Means of Communications
In all its programs, activities and employment, U.S. Wheat Associates (USW) prohibits discrimination on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

 

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Turkey Should Not Retain GSP Preferences Without Fixes on Flour Subsidies

ARLINGTON, Virginia – An on-going series of policies that disrupts global demand for U.S. wheat and does not comply with World Trade Organization (WTO) rules should disqualify Turkey for eligibility under the Generalized System of Preferences (GSP) program. U.S. Wheat Associates (USW) testified to that effect at a hearing Sept. 26, 2018, held by the Office of the U.S. Trade Representative (USTR).

 

The GSP program provides preferential access to the U.S. market for developing countries that meet program standards. In 2017, Turkey exported $1.7 billion in goods to the United States under GSP, making it is one of the program’s largest beneficiaries. However, the law authorizing GSP requires beneficiary countries to refrain from engaging in unreasonable export practices. U.S. Wheat Associates believes that Turkey’s inward processing system for wheat and flour functions as an unreasonable export practice.

 

“Farmers have been complaining about Turkish flour for the better part of a decade due to the displacement of U.S. wheat in critical markets,” said USW Vice President of Policy Ben Conner, who represented USW at the hearing. “The fundamental problems are Turkey’s excessive domestic support and high tariffs combined with an inward processing regime that does not meet World Trade Organization standards.”

 

Turkey is the world’s largest flour exporter and in 2017 was the ninth largest exporter of wheat and wheat equivalents. Turkish flour not only displaces U.S. wheat in overseas markets but also harms U.S. wheat customers in local flour milling industries. One of USW’s top policy priorities is to see Turkey bring its wheat policy regime in line with its WTO commitments.

 

To read the full USW submission to USTR, click here.

 

USW’s mission is to develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers in more than 100 countries. Its activities are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

 

 

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Nondiscrimination and Alternate Means of Communications
In all its programs, activities and employment, U.S. Wheat Associates (USW) prohibits discrimination on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

 

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NAWG and USW Welcome Attention on Trade Policy Risks and Opportunities

Washington, D.C. — The National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) appreciate the Senate Agriculture Committee holding its “Perspectives on U.S. Agricultural Trade” hearing Sept. 13, 2018, focused on the Trump Administration’s trade agenda. The organizations are encouraged that Chairman Roberts and Ranking Member Stabenow, as well as the members of the Administration who testified today, recognize the challenges farmers face in weathering today’s unique trade policy environment.

 

“We commend the leadership for holding this hearing and we were glad to hear the Administration witnesses acknowledge there is legitimate anxiety in farm country about the impact of retaliatory tariffs on our products,” said Jimmie Musick, NAWG President and a wheat grower from Sentinel, Okla. “We see opportunity for our members from the strong resistance to China’s unfair trade policies. We also recognize the risk to farm income continues to grow the longer this confrontation with China continues and we call on the Administration to do all it can to resolve the dispute as quickly as possible. Finally, we’re grateful to Ambassador Doud for making the grain grading disparity with Canada a top priority in NAFTA.”

 

“In our successful partnership with USDA’s Foreign Agricultural Service, state wheat commissions and U.S. Wheat Associates have worked for many decades to develop markets in China, Mexico, Japan, Europe and dozens of other countries,” said Chris Kolstad, USW Chairman and a wheat grower from Ledger, Mont. “Wheat growers depend on export markets to support wheat prices and we want the Administration to succeed in breaking down trade barriers. We’re also glad that Ambassador Doud and Under Secretary McKinney both noted the importance of negotiating new agreements that work for our farm families and for our overseas customers.”

 

NAWG and USW look forward to final approval of the renegotiated agreement with Mexico that maintains duty free access to its crucial wheat market. The organizations are also encouraging the Administration to rejoin the Trans-Pacific Partnership or quickly negotiate a trade agreement with Japan that keeps U.S. wheat on equal footing with competing supplies from Canada and Australia.

 

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About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 22 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

 

About U.S. Wheat Associates

USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

 

Nondiscrimination and Alternate Means of Communications
In all of its programs, activities and employment, U.S. Wheat Associates (USW) prohibits discrimination on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

 

 

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U.S. Wheat Associates Welcomes NAFTA Breakthrough and Market Development Investment

ARLINGTON, Virginia — U.S. Wheat Associates (USW) believes today’s breakthrough in NAFTA negotiations with Mexico and the announcement that the trade dispute aid package for U.S. agriculture includes new funding for export market development are welcome news for U.S. wheat growers.

 

“We are glad to see progress toward a renegotiated NAFTA that builds on the opportunities the existing agreement opened with Mexico’s wheat importing flour millers. We hope it spurs negotiations with Canada to resolve outstanding issues like its discriminatory wheat grading law,” said USW Chairman Chris Kolstad, a wheat farmer from Ledger, Mont. “The new market development program will help us plan new activities that will begin repairing the cracks in our crucial, long-term trade relationships with Mexico and other countries. We appreciate that the Trump Administration supports the need for additional market development in this unique trade environment.”

 

Kolstad said U.S. Wheat Associates agrees with the National Association of Wheat Growers (NAWG) that while it is important to hold China and other countries accountable for unfair trade practices, policies that invited retaliation and created the need to provide federal aid to farmers are not the best course.

 

“Like NAWG, we believe the long-term solution is to end the trade war and move on to negotiating new trade deals that work for farmers and for our overseas customers,” Kolstad said.

 

USW’s mission is to develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers in more than 100 countries. Its activities are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service.

 

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Nondiscrimination and Alternate Means of Communications
In all its programs, activities and employment, U.S. Wheat Associates (USW) prohibits discrimination on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

 

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Wheat Organizations Continue to Support an End to Trade War as Administration Offers Help for Farmers

ARLINGTON, Virginia — The Trump Administration announced today that it would provide $12 billion to help farmers cope with the results of the current trade dispute ignited by new U.S. tariffs.

U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are glad that the Administration recognizes farming as a risky business and acknowledges that farmers need help to manage the additional risk from its trade policies. However, our concerns still lie in a lengthy trade war that will cause long-term, irreparable harm to U.S. agriculture. We urge the Administration to recognize this self-inflicted damage and to end the trade war immediately as well as to work within the rules-based trading system in partnership with like-minded countries to address serious problems in the global economy.

While tariffs aren’t the answer, the wheat industry greatly appreciates the Administration’s efforts to push back on China’s unfair trade practices through dispute settlement cases at the World Trade Organization. The policies being challenged hurt U.S. farmers and have undermined trust in the rules-based trading system. President Trump understands that the farm economy is struggling and is working to improve the livelihoods of growers across the country through these efforts.

 

Agriculture needs strong trading partners, so we also encourage the Administration to rejoin the Trans-Pacific Partnership and finalize NAFTA negotiations so that the U.S. Trade Representative can focus on new trading partners that will be as important as ever. These actions will have lasting benefits to wheat growers across the country.

To repeat, this damage is self-inflicted, so the Administration is right to take steps to address it, but the next step should be ending the trade war. We will also be closely engaged with Administration officials as the details of the announcement made today are developed.

 

About U.S. Wheat Associates

USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

 

About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

 

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Nondiscrimination and Alternate Means of Communications
In all its programs, activities and employment, U.S. Wheat Associates (USW) prohibits discrimination on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

 

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The Trump Administration Can Prevent the Threat of Wheat Export Losses Under CPTPP

ARLINGTON, Virginia — Implementation of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) without the United States is a time bomb set to demolish more than 60 years of hard work by multiple generations of U.S. farm families to develop a large and loyal market for U.S. wheat in Japan. The U.S. government has the power, however, to defuse this device and avoid an unnecessary and costly disaster.

Today, Japan became the second country to ratify the CPTPP, which could be implemented in early 2019 after six of the 11 countries that signed the agreement have ratified it. This development comes on the same day the United States and China escalated a trade war that has already imposed harm on U.S. wheat growers, potentially compounding the difficult economic conditions further. Canada and Australia, which are major competitors to the United States in the Japanese wheat market, are also parties to the agreement, meaning implementation would put U.S. wheat farmers at a severe disadvantage in our second biggest wheat market.

Once implemented, the agreement calls for incrementally discounting the effective import tariffs that Japanese flour millers pay for imported Australian and Canadian milling wheat from about $150 to about $85 per metric ton (MT). Imported U.S. wheat effective tariffs would remain at about $150 per MT.

Sources within the Japanese milling industry estimate this disadvantage would force them to start looking at alternatives to U.S. wheat and cut average total imports of western white, dark northern spring (DNS) and hard red winter (HRW) wheat by more than half — from about 3.1 million metric tons (MMT) per year to 1.35 MMT per year or less. If nothing changes before the effective tariff schedule is fully implemented, U.S. wheat farmers and the U.S. grain trade will essentially be writing a $500 million check every year to Australian and Canadian farmers.

U.S. Wheat Associates and the National Association of Wheat Growers call on the Trump Administration to end this threat by taking the bold but necessary steps toward joining the CPTPP or engaging in bilateral negotiations. We see no other way to stop a situation that we believe will cut already unprofitable cash wheat prices even further.

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

Nondiscrimination and Alternate Means of Communications
In all of its programs, activities and employment, U.S. Wheat Associates (USW) prohibits discrimination on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

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Trade Conflict with China Already Hurting U.S. Farm Families

From March to June over the past three years, Chinese flour milling companies and their importers purchased an average of about 20 million bushels of U.S. wheat, returning well over $145 million to American farm families and grain handlers. Not in 2018, however. Unable to accept the risk of escalating import prices, Chinese customers stopped making new purchases of U.S. wheat last March, after the Chinese government threatened a 25 percent import tariff on U.S. wheat in retaliation to the threat of U.S. tariffs on Chinese imports.

Today, damage to the livelihood of America’s hard-working farm families is no longer just a threat. The exchange of punitive tariffs between Washington and Beijing today represents the next phase of what could be a long and difficult struggle that will likely inflict more pain before we reach an unknown resolution.

U.S. Wheat Associates (USW), the National Association of Wheat Growers (NAWG) and the growers we represent reaffirm our position that unfair Chinese government policies create unnecessary trade distortions that hurt U.S. farmers and other industries. We urged the U.S. government to challenge China’s domestic price support and tariff rate quota compliance that led to cases disputing these policies within the World Trade Organization (WTO). These cases served notice to China and our trading partners that the United States was willing to lead a legitimate effort to enforce existing trade rules — by following those rules.

China did not stop importing U.S. wheat in response to these cases, in part because Chinese demand for our high-quality wheat crops is rapidly growing. The unilateral decision to impose tariffs, however, has already had a direct, damaging effect on U.S. wheat growers.

Wheat growers can only hope that the United States and China will stop trading salvos and we call on both governments to come to a resolution quickly. Farmers are eager to move past this dispute and start trading wheat and other agricultural products again soon.

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

Nondiscrimination and Alternate Means of Communications
In all of its programs, activities and employment, U.S. Wheat Associates (USW) prohibits discrimination on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

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U.S. Wheat Associates: The Only Threat from Auto Imports is Retaliation from Trading Partners

ARLINGTON, Virginia — In response to a U.S. Department of Commerce Section 232 investigation into auto and auto parts imports, U.S. Wheat Associates (USW) once again expressed concern about using questionable national security arguments as a basis for import restrictions and the potential for retaliation from trading partners.

In comments on the investigation submitted June 22, 2018, USW strongly encouraged the Commerce Department to “stick to serious national security concerns when using Section 232 and avoid making this process even more ridiculous than it has become after the steel and aluminum investigations.”

Before any restrictions on auto and parts imports are taken under Section 232, USW said Commerce “should consider the fallout if other countries follow suit and impose restrictions on U.S. wheat or other products as a result of their own national security concerns, whether real or imagined.”

As a representative of U.S. wheat farm families who rely on export demand to boost their income potential, USW was among the first agricultural organizations to publicly oppose the use of Section 232 to impose tariffs on steel and aluminum imports. Farmers have already been hit hard by tariffs on hundreds of food and agricultural products in retaliation for recent unilateral trade actions and much more is expected soon.

While the reactions of countries to U.S. steel and aluminum protectionism has been negative for farmers, USW said the case of automobiles is much more dangerous because the dollar figures are so much larger.

“Automotive imports in 2017 were about ten times larger than steel imports and much of this came from significant wheat importers like Mexico, Japan, South Korea and the European Union,” USW said in its comments. “The chances that U.S. wheat farmers will face retaliation increases substantially if the final measures reflect the scope of the investigation.”

USW also argues that invalid use of the national security exemption created in Section 232 of the General Agreement on Tariffs and Trade undermines effective global trading rules.

“Whatever surface level plausibility existed for justifying restriction on steel and aluminum imports is entirely absent when it comes to automobiles,” USW stated. “The breathtaking leap of logic required to recommend tariffs on imported automobiles and parts due to their threats to national security suggest that the only plausible reasons for this action are either economic protectionism in violation of our WTO commitments or a negotiating tactic. Use of this statute as a negotiating tactic is an abuse of the authority granted by Congress and economic protection is available through trade remedy laws if the need for protection meets the requirements of the relevant statutes. In either case, the Department of Commerce should find that these imports do not threaten national security.”

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Nondiscrimination and Alternate Means of Communications
In all its programs, activities and employment, U.S. Wheat Associates (USW) prohibits discrimination on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

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Wheat harvest photo
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Give U.S. Wheat Farmers the Freedom to Compete

ARLINGTON, Virginia — The familiar African proverb says that when elephants fight, it is the grass that suffers. Unfortunately for America’s farmers, that grass is the wheat growing in their fields as the big guys in Washington, D.C., and Beijing escalate their trade fight.

China’s state-run importing agency and private flour millers bought an average of more than 1.1 million metric tons of U.S. wheat the past five years because our farmers produce higher quality grain than China can grow on its own. Following the Trump Administration’s announcement of new tariffs on $50 billion of imported Chinese goods, China hit back with tariffs of its own, including a 25 percent tariff on U.S. wheat imports. In response, the White House is ordering trade officials to draw up a list of $200 billion worth of Chinese goods that would be hit with 10 percent tariff on top of the 25 percent tariffs already promised. In a trade war, agriculture always gets hit first and the effects of these tariffs could prove devastating for farmers.

No one in China will be hurt if the retaliatory U.S. wheat tariff is implemented. China has huge amounts of stored wheat and they can purchase what they need from Australia, Canada or even Kazakhstan, although Chinese consumers will miss the opportunity to experience higher quality products made from U.S. wheat. Instead, the outcome is likely to further erode the incomes of farm families who strongly support addressing the real concerns about China’s trade policies.

According to the USDA, net cash wheat farm income is projected to be down more than 21 percent this year compared to last. U.S. wheat growers are not in the business of ceding a market like China that wants to buy their crop and could buy so much more of it. That is why in 2016, U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) called for World Trade Organization (WTO) cases intended to push China to meet its WTO commitments on domestic support and tariff rate quota management. We are happy that the Trump Administration supports and is pursuing those cases.

USW and NAWG know that farmers still want our organizations to keep fighting for fair opportunities to compete in China and other countries. They would prefer, however, to see our government do that first within the processes already in place.

Instead, the Administration is doubling down on a tactical policy that makes an already risky business of agriculture even more volatile. Policies like the ones being proposed will only make times harder for farmers, and the Administration’s vague promises of protection for the farmers we represent offers little consolation.

Our country’s continuing agricultural trade surplus is proof that America’s farmers can compete successfully in the world based on the quality and value of what they produce, given the freedom to do so.

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

Nondiscrimination and Alternate Means of Communications
In all its programs, activities and employment, U.S. Wheat Associates (USW) prohibits discrimination on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

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